more economics help needed here....?

Question

Okay, I was wondering if anyone could help with these questions. Thanks!!

1. Comparing aggregate expenditure and aggregate incomes shows that:

A) they are equal
B)aggregate income can not equal aggregate expenditure if we have any savings.
C)aggregate income is usually greater than aggregate expenditure
D)aggregate expenditure is usually greater than aggregate income.

2. The capital stock ______ depreciation and _______ investment.

A)increases because of; decreases because of
B)increases because of; is unaffected by
C)is unaffected by; is unaffected by
D)decreases because of; increases because of

3. If an American firm produces goods that are sold to a German household, then:

A) German GDP increases but not that of the United States
B)the transaction is considered an export in the German GDP accounts.
C)net exports in the US will not change because an export immediately generates an offsetting import.
D)US GDP increases


Any input would help a lot!!

Answer 1

1)A i- the expenditures of one person are the incomes of another
2)D
3)D - US GDP increases due to more exports (more exports means more inflows of money which increases your Income, Aggregate Demand will go up and thus the GDP will go up)

Answer 2

Q1) A, C and D are all undetermined. You can't necessarily tell which one is greater. B is correct; if we have savings, aggregate income must be higher (you can't save if you're spending everything!).

Q2) Depreciation decreases capital stock. Investment increases it, if I understand your question correctly. I think it's D.

Q3) It's not A; the Germans haven't produced anything. It's not B; the Germans are importing it, not exporting it. It's not C; that's simply not true...imports minus exports form trade gaps. It's D.